Real estate is one of the top catalysts in wealth building. It allows you to generate passive monthly income through a powerful concept known as leverage. And while you may be fully on board with investing in Houston real estate, a hesitant spouse can hold you back from going all in. What do you do?
Try These 5 Tips
In situations where one spouse is ready to invest in real estate and another spouse is not, you can typically narrow it down to one of the following:
- The spouse is strongly opposed. Does your spouse get angry when you mention real estate investing? Do they have past experiences that make them highly reticent to get involved again? A spouse who is strongly opposed to real estate investing is usually very conservative in their finances and/or has battle scars that keep them from trying again.
- The spouse is hesitant. Some spouses are hesitant because they’re not sure about the ROI. They worry about tying up too much cash in real estate and/or having to deal with midnight repair requests, tax challenges, etc.
- The spouse is uneducated on real estate investing. In the majority of cases, one spouse is hesitant to invest in real estate because they lack the proper education. They aren’t aware of the opportunities and assume that it’s only something “other” people do.
You can work with the latter two types of opposition. If it’s the former, you’ve got your work cut out for you. But in any of the three situations, a disciplined approach helps. Here are a few tips on how to proceed:
1. Get Clear on Why You Want to Invest in Real Estate
You can’t get your spouse to buy into something that you’re not fully confident in yourself. So before you go convincing your spouse to get on board, take the time to get clear on why you want to invest in real estate in the first place.
Do you want to invest as a way of generating passive income? Are you interested in the tax benefits? Do you like the idea of investing in an appreciating asset? Do you genuinely love real estate and want to switch career paths?
The more you can clarify your stance and create a list of tangible benefits for your family, the more persuasive you’ll be.
2. Consider if Working With Your Spouse is a Smart Idea
Investing in real estate as a couple might sound like a good idea, but consider the practical aspects of working together with your spouse. You know your relationship better than anyone. Will it work?
“Maybe either you or your spouse tends to have a controlling personality, feeling the need to always have the final say,” Daniela Andreevska writes for Mashvisor. “Well, if this is the case in your personal relationship at home, keep in mind that this dynamic will also be transferred to your professional relations in your common real estate investing business. While you might be used to your spouse’s attempts to control the household, you might not be able to tolerate the same experience in your business.”
Or perhaps one of you enjoys taking risks while the other is totally conservative. This could create unnecessary friction in your relationship.
It’s worth looking at this situation from any and all angles. The last thing you want is to compromise the health of your relationship just to make a few bucks on an investment. Relationships matter more. If you can make investing work with your relationship, great! If you can’t, try something else.
3. Take the Slow Drip Approach
There’s a wrong and right way to introduce the topic of real estate investing to your spouse.
The wrong way involves blindsiding your spouse with an onslaught of information and saying something like, “Honey, we’re investing in real estate!” Depending on your spouse’s personality, they’ll likely feel overwhelmed and become defensive.
The right approach is to “slow drip” on your spouse. This might look like casually mentioning a story you heard about a friend having success with real estate. Then buying a book about real estate investing and casually dropping insights that you’ve learned. You might broach the topic over a glass of wine and then drop it for a couple of days.
Drip. Drip. Drip.
Eventually, this drip approach helps your spouse become comfortable with the topic. And when you finally do try to get them fully on board, there won’t be as much disagreement.
4. Sell Them on the Freedom
Real estate investing is not as passive as most people think. It requires some time and attention, especially on the front end. However, it’s also an excellent way to secure a strong financial future – both for you and for future generations.
If you really want to get your spouse involved, move past the dollars and cents and focus on the freedom that real estate investing could provide the two of you. Play up the flexibility and get your spouse to start dreaming. That’s where the real magic happens.
5. Involve Them in Learning
You might be the one doing most of the deal finding, analysis, and management of the investments, but you still want your spouse to be “in the know.” This can also help them understand why real estate investing is so powerful and beneficial.
For best results, get your spouse involved in the learning process with you. Read books together, take courses, watch YouTube videos, and join networking groups. Have dinner with other couples that invest in real estate. As you both grow in your knowledge and understanding, this will become a much more feasible and attractive option for your family.
Work With Green Residential
At Green Residential, we take pride in serving Houston landlords and real estate investors as they seek to grow their income-producing portfolios and maximize cash flow in a streamlined, hands-off fashion. Want to know more about how we can help you manage your first rental property? Contact us today and we’ll be happy to explain more!